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Individuals to get bankruptcy protection soon

Individuals to get bankruptcy protection soon
Centre Begins Framing Rulesc

The government has begun work on laying down a process for individuals to be declared bankrupt, which will help them deal with a financial crisis rather than be bogged down by it. The rules being framed will help a defaulter repay the money in a structured way, rather than being forced to cough it up to banks in one go.

Sources said the idea is to make the process more humane as the rules would deal with a host of individuals — from farmers and kirana shop owners to a salaried middle class person who may be struggling to repay a loan for reasons like loss of job.“There is huge social stig-resolve and recover dues quickly ma attached to this. So, you cannot be punitive. People should be allowed to restructure their lives, ” said Sumant Batra, managing partner and head of the insolvency, secured transactions & corporate law practice at law firm Kesar Dass B & Associates.

From this year, Saudi Arabia has begun levying a dependant tax on non-nationals residing in the kingdom. The tax rate is SR 100 (Rs 1,700 approx) per month on each dependent. It will be increased to SR 200 in 2018, SR 300 in 2019 and SR 400 in 2020 per dependent member of the expatriate family,” Saudi government said. There are around 3 million Indians in Saudi Arabia.

For now, official figures do not show any noticeable impact on Indians there. Indian officials had, however, raised the issue with a visiting Saudi delegation on July 11, the MEA told the House.

In Bahrain, a construction company employing nearly 1,500 Indians laid off around 700 workers but was unable to repatriate them after clearing their dues due to the financial crisis. All such stories have an adverse impact on worker mobility. Indians also continue to get duped by fake recruiting agents. Instances of mistreatment of Indian workers could have added to the slowdown.

The Business Standard, New Delhi, 12th September 2017

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